Ulster County Industrial Development Agency wants Skate Time 209 to hike tax payments

-- The Ulster County Industrial Development Agency wants the owners of Skate Time 209 to pay more in property and school taxes than the Accord business originally agreed to because, agency officials said, the business hasn't created all the jobs it originally proposed.

The roller skating rink is owned by Ulster County Legislature Chairwoman Terry Bernardo, R-Accord, and her husband Len Bernardo.

Members of the Agency's board of directors on Wednesday voted 6-1 to ask the Bernardos to voluntarily agree to a 14 percent reduction in the payment-in-lieu-of taxes (PILOT) programs they receive in school and property taxes for their business. Board member John Morrow opposed the resolution.

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Skate Time 209 is one of several businesses deemed by the Industrial Development Agency to be "under-performing" in job creation. Last month, the board adopted a policy allowing the agency to ask businesses that have not met initial job projects to voluntarily agree to a reduction in the level of tax breaks received by a percentage equal to one-half the percentage shortfall in job creation.

On their application for tax breaks, the Bernardos indicated they would create 20 full-time jobs, but have only created nine full- and part-time jobs, a 55 percent shortfall in job creation. Under the IDA policy, the PILOT would be reduced by 27.5 percent, however, because the business has provided other benefits to the community, such as acting as a draw for tourism, that reduction was cut in half, to 14 percent. That means, if the Bernardos agree, for the remaining four years of the company's pilot program it would receive only a 36 percent reduction in taxes as opposed to the 50 percent reduction granted the company.

The reduction translates into a roughly $8,340 increase in the amount the company would pay in lieu of property taxes.

Len Bernardo, who attended Wednesday's board meeting, again argued that job creation was never a criteria for receiving tax breaks. He said he didn't know whether he would agree to the reduced PILOT program.

"I don't know what I intend to do," said Bernardo. "I'm thinking about it."

Industrial Development Agency Chairman David O'Halloran said that if the Bernardos don't agree to the change, the board could consider a termination of the payment in lieu of taxes program for their company.

The question of whether Skate Time was living up to its job creation predictions was first raised in 2008, when Len Bernardo and Michael Hein vied to become Ulster County's first county executive, but nothing ever came of those concerns.

O'Halloran, who also serves as the town of Rochester Republican Committee chairman and backed Terry Bernardo's election campaign, last month revealed his connection to the Bernardos and offered to recuse himself from the discussion over the Skate Time matter, however the board's attorney and other board members said it was unnecessary.